SIFMA Report: Securitization Issuance Totals $1.2 trillion in the First Half of 2017

New York, NY, November 1, 2017 – SIFMA issued its Mid-Year Securitization Report today, showing securitization issuance, including agency and non-agency mortgage-backed securities (MBS) and asset-backed securities (ABS), totaled $1.2 trillion in the first half of 2017, a decline of 13.3 percent from 2H’16 ($1.4 trillion) but an increase of 17.4 percent increase from $1.0 trillion in the same period last year (1H’16). The increase was driven by the rise in ABS issuance, particularly CLO refinancings. Non-agency MBS and ABS issuance volumes rose by 91.3 percent and 28.0 percent, respectively, in 1H’17 from 1H’16, while agency MBS issuance volumes for 1H’17 fell 0.2 percent from 1H’16.

Average daily trading volume was $209.3 billion in 1H’17, an increase of 0.6 percent compared with the same period in 2016, with the rise in ABS and agency MBS trading volumes offsetting the decline in non-agency MBS trading volumes. ABS and agency MBS rose 21.5 percent and 0.6 percent, respectively, in 1H’17 from 1H’16, while non-agency MBS declined 9.3 percent.

Non-agency mortgage-related issuance totaled $89.5 billion in 1H’17, an increase of 38.2 percent from the prior year, comprised of $36.0 billion of commercial mortgage-backed securities (CMBS) and $53.5 billion of residential mortgage-backed securities (RMBS). Outstanding volumes totaled $1.3 trillion at the end of 1H’17, a decline of 11.0 percent y-o-y, comprised of $489.5 billion of CMBS and $800.2 billion of RMBS.

ABS issuance totaled $279.6 billion in 1H’17, an increase of 118.0 percent from 1H’16 and an increase of 44.1 percent from 2H’16. Outstanding volumes shrank by 2.7 percent y-o-y to $1.3 trillion. CLO refinancings drove a significant chunk of issuance volume in late 2016 and early 2017.

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SIFMA is the voice of the U.S. securities industry. We represent the broker-dealers, banks and asset managers whose nearly 1 million employees provide access to the capital markets, raising over $2.5 trillion for businesses and municipalities in the U.S., serving clients with over $18.5 trillion in assets and managing more than $67 trillion in assets for individual and institutional clients including mutual funds and retirement plans. SIFMA, with offices in New York and Washington, D.C., is the U.S. regional member of the Global Financial Markets Association (GFMA). For more information, visit http://www.sifma.org.